EXHIBIT 99.2
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2004
The unaudited pro forma condensed consolidated balance sheet assumes the
acquisition of TravMed USA, Inc. and selected accounts of its affiliate
("TravMed") occurrs on January 1, 2004, pursuant to the Agreement and Plan of
Reorganization and is based on the estimates and assumptions set forth herein
and in the notes below to these statements, utilizing the historical balance
sheets of Crdentia and TravMed as of December 31, 2004. This pro forma
information has been prepared utilizing the historical financial statements and
notes thereto, which are incorporated by reference herein. The pro forma
financial data does not purport to be indicative of the results which actually
would have been obtained had the purchase been effected on the date indicated or
of the results which may be obtained in the future.
Historical Proforma
Crdentia, Corp. TravMed Adjustments Proforma
----------------------------- ---------------------------
Current assets:
Cash and cash equivalents $ 362,472 $ 10,110 $ 372,582
Accounts receivable, net 3,212,029 1,407,125 4,619,154
Other current assets 495,579 712,087 (4) (454,479) 753,187
----------------------------- ------------
Total current assets 4,070,080 2,129,322 5,744,923
Property and equipment, net 293,600 56,712 350,312
Goodwill 12,974,973 (3) 5,604,622 18,579,595
Intangibles, net 1,660,717 (3) 492,000 2,152,717
Other assets 837,061 837,061
----------------------------- ------------
Total assets $ 19,836,431 $ 2,186,034 $ 27,664,608
============================= ============
Current liabilities:
Accounts payable and accrued expenses $ 2,523,069 393,801 $ 2,916,870
Accrued dividends on convertible preferred stock 1,027,254 1,027,254
Accrued employee compensation and benefits 554,945 554,945
Revolving lines of credit 2,521,598 937,145 3,458,743
Current portion of notes payable, net 2,234,764 88,981 (1,4) 505,420 2,829,165
Note payable to stockholders 400,000 194,000 (4) (194,000) 400,000
Subordinated convertible notes, net 50,000 50,000
Other current liabilities 100,017 16,251 116,268
----------------------------- ------------
Total current liabilities 9,411,647 1,630,178 11,353,245
Long term liabilities 918,007 (1) 2,621,089 3,539,096
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Total liabilities 10,329,654 1,630,178 14,892,341
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Convertible preferred stock, 10,000,000 shares authorized
Series B Convertible Preferred Stock, $0.0001 par value, 750,000 750,000
3,750,000 shares issued and outstanding
Series B-1 Convertible Preferred Stock, $0.0001 par value, 30,123,400 30,123,400
93,043 shares issued and outstanding
Series C Convertible Preferred Stock, $0.0001 par value, 1,070,510 (2) 3,265,490 4,336,000
52,501 shares issued and outstanding
Series C preferred stock warrants 2,079,910 2,079,910
Stockholders' equity (deficit) (24,517,043) 555,856 (4) (555,856) (24,517,043)
----------------------------- ------------
Total liabilities and stockholders' equity (deficit) $ 19,836,431 $ 2,186,034 $ 27,664,608
============================= ============
(1) record debt incurred in acquisition
(2) record issuance of Series C preferred stock used to finance the cash portion
of the acquisition
(3) record purchase of TravMed USA, Inc. and selected accounts of its Affiliate
and related acquisition costs
(4) eliminate assets and liabilities not acquired
EXHIBIT 99.2
UNAUDITED PRO-FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
The unaudited pro forma condensed consolidated operating statement assumes
the acquisition of TravMed USA, Inc. and selected accounts of its affiliate
("TravMed") occurred on the first day of the period ended December 31, 2004,
pursuant to the Agreement and Plan of Reorganization and is based on the
estimates and assumptions set forth herein and in the notes below to these
statements, utilizing the historical audited operating statements of Crdentia
Corp and TravMed for the 12 month period ended December 31, 2004. This pro forma
information has been prepared utilizing the historical financial statements and
notes thereto, which are incorporated by reference herein. The pro forma
financial data does not purport to be indicative of the results which actually
would have been obtained had the purchase been effected on the dates indicated
or of the results which may be obtained in the future.
Historical Proforma
Crdentia, Corp. TravMed Adjustments Proforma
----------------------------- ----------------------------
Revenue from services $ 23,018,389 $ 12,104,904 $ 35,123,293
Direct operating expenses 18,251,274 9,425,722 27,676,996
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Gross profit 4,767,115 2,679,182 7,446,297
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Operating expenses:
Selling, general, and administrative expenses 9,517,218 1,998,584 (1) 98,400 11,614,202
Loss on impairment of intangibles 1,800,000 1,800,000
Non-cash stock based compensation 393,857 393,857
----------------------------- ------------
Total operating expenses 11,711,075 1,998,584 13,808,059
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Loss from operations (6,943,960) 680,598 (6,361,762)
Non-cash expense for conversion of debt (24,541,000) (24,541,000)
Interest expense, net (2,217,894) (43,847)(2) (242,748) (2,504,489)
----------------------------- ------------
Loss before income taxes (33,702,854) 636,751 (33,407,251)
Income tax expense -- -- --
----------------------------- ------------
Net loss $(33,702,854) $ 636,751 $(33,407,251)
============================= ============
Deemed dividend related to beneficial conversion
feature on Series A convertible preferred stock (1,000,000) (1,000,000)
Deemed dividend related to beneficial conversion
feature on Series B convertible preferred stock (1,250,000) (1,250,000)
Deemed dividend related to beneficial conversion
feature on Series B-1 convertible preferred stock (1,328,400) (1,328,400)
Deemed dividend related to beneficial conversion
feature on Series C convertible preferred stock (1,070,510) (1,070,510)
Non-cash preferred stock dividends (3,635,699) (3,635,699)
----------------------------- ------------
Net loss attributable to common shareholders $(41,987,463) $ 636,751 $(41,691,860)
============================= ============
Basic and diluted loss per common share
attributable to common shareholders $ (5.23) $ (5.19)
============ ============
Weighted average number of common shares outstanding 8,033,725 8,033,725
============ ============
(1) amortization of intangibles
(2) interest expense on debt incurred in the acquisition